RBE No.39/2018: Dearness Allowance

No.PC-VII/2016/I/7/2/1, dated 19.03.2018

Sub: Grant of Dearness Allowance to Railway employees – revised rates effective form 01.01.2018.

1. The understand is directed to refer to this Ministry’s letter RBE No.137/2017, dated 06.10.2017 (F. No.PC-VII/2016/I/7/2/1) on the subject mentioned above and to say that the President is pleased to decide that Dearness Allowance payable to Railway employees shall be enhanced from the existing rate of 5% to 7% of the basic pay with effect from 1st January, 2018.

2. The term, ‘Basic pay’ in the revised pay structure means the pay drawn in the prescribed Level in pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.

3. The Dearness Allowance will continue to be distinct element of remuneration and will not be treated as pay within the Ambit of Rule 1303(FR-9(21), Indian Railway Establishment Code, Volume-II (Sixth Edition 1987) – Second Reprint – 2005.

4. The payment on account of Dearness Allowance involving fraction of 50 paise and above may be rounded to the next higher rupee and the fraction of less than 50 paise may be ignored.

5. The payment of arrears of Dearness Allowance shall not be made before the date of disbursement of salary of March 2018.

6. This issues with concurrence of the Finance Directorate of Ministry of Railways.

Download Railway Board Circular RBE No.39/2018

Forward reference RBE No.